Aug. 29 at 7:49 PM
Alibaba shares jumped 13% after Q1 FY26 earnings showed strong AI and cloud momentum. Revenue came in at
$34.6B (+2% YoY) vs.
$35.2B est., but net income surged 76% YoY to
$5.9B, boosted by equity gains and the sale of Trendyol. EPS was
$2.06, above
$1.97 est.
Cloud-intelligence was the fastest-growing unit, up 26% YoY to
$4.7B. E-commerce, still the largest segment, rose 10% to
$12.5B, driven by “instant commerce” delivery.
CEO Eddie Wu reaffirmed a 3-year, ¥380B ($ 53B) investment plan in cloud + AI. Capex last quarter was ¥38.6B (
$5.4B).
Amid U.S.-China chip tensions, BABA is testing a new AI chip as a potential domestic alternative to Nvidia’s NVDA H20. Unlike prior designs fabricated by TSMC (2330), the new chip is made in China.
BABA ADRs are up 40% YTD despite trade-war volatility.
$TSM $BABA $NVDA